Compare the property and the cash flow
Record the purchase price, initial fees, finance terms, expected rent, vacancy allowance and annual costs. Keep source-backed figures separate from your assumptions. The calculation is only as useful as the evidence behind those inputs.
A worked illustration
Illustrative figures only: a property priced at AED 2,000,000 with assumed annual rent of AED 140,000 has a gross yield of 7%. If annual ownership costs are assumed to be AED 30,000, rent after those costs is AED 110,000, or 5.5% of the purchase price before finance, purchase costs and tax. These are example inputs, not a RAMRE forecast or a quoted property return.
Your comparison checklist
- Purchase price and the evidence supporting it.
- Initial purchase costs and any immediate works.
- Service charges, management, maintenance and insurance.
- Achievable rent, renewal assumptions and vacancy.
- Loan amount, rate structure, fees and repayments.
- Holding period, exit costs and a slower-sale scenario.
- Title, use restrictions, developer and project documentation.
Test a less favourable scenario
Reduce the rent assumption, add a vacant period, increase repair costs and, if financed, test higher repayments. Consider how long you could hold the property if selling takes longer than expected. Avoid using projected appreciation to justify cash flows you cannot afford.
From comparison to decision
Ask RAMRE for a focused property comparison and seek qualified advice for your financing, ownership structure and tax position. No single score can replace reviewing the documents, inspecting the property and understanding your own exposure.